CORN

• Corn is trading lower this morning after posting three solid days of gains last week which has seen prices 10 cents higher. Trade is quiet ahead of the WASDE report at 11am.
• The recent gains are likely from strength in export sales with corn exports now 30% ahead of last year’s pace. Ethanol grind has been making records as well, pointing to good domestic demand.
• Estimates for today’s WASDE report see corn ending stocks falling slightly due to an expected decrease in production. The Argentinian corn crop is expected to be reduced while Brazil’s is expected to improve.

SOYBEANS

• Soybeans are trading higher this morning but have had difficulty breaking out of their tight trading range. Yesterday, prices attempted to rally and were up by 9 cents, but faded into a lower close.
• This morning, soybean meal is trading higher while soybean oil is lower. The previous trend had seen meal declining and bean oil gaining, but that pattern has begun to change with cheap meal prices attracting demand.
• Estimates for today’s WASDE report see soybean ending stocks increasing despite an expected slight decrease in production. Both Argentinian and Brazilian production are expected to increase.

WHEAT

• All three wheat classes are trading lower this morning but may be having trouble breaking through the 20-day moving average. Prices are now 16 cents off last week’s low.
• Trade guesses for tomorrow’s USDA report see US wheat carryout dropping 1 mb to 814 mb, with World wheat stocks increasing slightly to 257.7 mmt.
• In Argentina, wheat yield are reportedly higher than previously expected, and production is now being forecast at 18.6 mmt. Export surplus could now exceed 13 mmt.

Author

Amanda Brill